23rd Feb 2007 13:01
Morgan Crucible Co PLC23 February 2007 MORGANITE CRUCIBLE LIMITED ("MORGANITE") ANNOUNCES THE PROPOSED CESSATION OF THE MANUFACTURE OF CRUCIBLES AND CLAY GRAPHITE PRODUCTS AT ITS NORTON FACILITY Morganite, a subsidiary of The Morgan Crucible Company plc, is regrettablyconsidering the proposal to cease the majority of its manufacturing at itsNorton (Worcester) site. Morganite has traditionally relied heavily on export markets outside Europe forits growth and continuing profitability. The continuing rise in the value ofsterling against the US dollar and the Japanese Yen since 2001 has significantlyaffected the profitability of the company and has made it less competitive inexport markets, particularly given the rise of low cost competition from Asia. Faced with these market conditions and the declining profitability of Morganite,the Directors have reluctantly concluded that they may have no alternative butto cease the manufacture of crucibles and clay graphite products at the Nortonsite. There will be a period of consultation with employee representatives butassuming no viable alternatives are forthcoming, it is anticipated that theseactivities could potentially cease in the first quarter of 2008. The Company expects to maintain a warehouse and distribution operation in thearea in order to continue to satisfy the requirements of its UK customers. Enquiries: Victoria Gould The Morgan Crucible Company plc 01753 837 306 Mike Smith / Clare Strange Finsbury 0207 251 3801 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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